Skip to main content
Level 2
June 6, 2019
Solved

If my employer reimburse out of pocket expenses, why does this affect my 2106 mileage deduction?

  • June 6, 2019
  • 1 reply
  • 0 views

It is asking me to tally up all the reimbursement, which were out of pocket expense, then it subtracts that from my 2106 mileage deduction, why? These reimbursements were not listed on my W2 or by any other means. 

Best answer by JulieCo

You can only deduct unreimbursed job-related expenses on your tax return.  If you were reimbursed for the expenses by your employer, then you technically did not pay for those expenses because you received your money back. 

And, the reimbursements are not included on your W-2 as income because you were simply being reimbursed for expenses that you paid for, not for work that you did.  

So reimbursed expenses are not included in the 2106 form as they are not deductible.  This is because you did not actually pay for those items, your employer did by reimbursing you for them.  

1 reply

JulieCoAnswer
Level 11
June 6, 2019

You can only deduct unreimbursed job-related expenses on your tax return.  If you were reimbursed for the expenses by your employer, then you technically did not pay for those expenses because you received your money back. 

And, the reimbursements are not included on your W-2 as income because you were simply being reimbursed for expenses that you paid for, not for work that you did.  

So reimbursed expenses are not included in the 2106 form as they are not deductible.  This is because you did not actually pay for those items, your employer did by reimbursing you for them.